Yesterday, those who monitor the promotional activity on the penny stock market have undoubtedly been startled by the compensation statement of the promotional letter issued on Fortune Oil & Gas Inc (PINK:FOGC) after the end of the session.
In fact, two newsletters with the same compensation were issued. The first one came form Jumping Penny Stocks and the second one from Smart penny Invest. The details at the end of the newsletters showed that $534 thousand were poured into the campaign. However, none of the promoters revealed the name of the paying party. At least it became clear that it is a non-affiliated shareholder of FOGC.
The promotional diary of FOGC shows that the company has been heavily promoted in the last couple of months. The promotional program of FOGC has failed to increase the value of FOGC shares, though.
At present, FOGC has slid down to $0.006 per share, which is where the company’s stock was six months ago. Thus, the last trace of the significant appreciation achieved by FOGC this spring was eliminated. [BANNER]
It seems that FOGC will make an attempt to bring back some of the former value of the stock by a press release issued yesterday and combined with the promotional coverage. However, it has already been proved that promotions, expensive as they are, are of little effect to the stock value.
The chance for a rally comes from the fact that FOGC has reached a support level which was tested in Feb. this year. On the other hand though, there are probably investors who have bought the stock on the previous promotions and are waiting for a suitable chance to get rid of the painful investment.
Thus, anything can happen at this critical technical point. Therefore, investors will have to carefully estimate what stance they will take towards FOGC stock.
